Need help GigE between Luxn<-->Cisco7500


We have recently turned up a GigE link (~5 miles) between our two
facilities. The carrier, Time W, is using Luxn 3202 optical access devices
as termination gear on each end of the link. The luxns in turn
connect via GigE to two cisco 7507 GEIP (we know about GEIP vs GEIP+).

          10 ft 5 mile 10 ft
cisco7507----- Lyxn 200===CO=====Luxn 1019 ------cisco7507-1019
          ^^^ ^^^ ^^^
      multi-mode single-mode multi-mode

The Cisco 7507 gigE port at 1019 sees alot of Giant packets and
%OSPF-4-ERRRCV errors suggesting that the ethernet frames are getting
MTU on each cisco is 1500 and the link is forced to 1000. We consistently
see packet losses of 10-20% with no load at all.

If anyone has any experience with Luxn gear and/or Luxn-cisco
interconnection please contact me off list.


interface GigabitEthernet5/0/0
ip address X.X.X.1
ip route-cache distributed
load-interval 30
no negotiation auto

GigabitEthernet5/0/0 is up, line protocol is up
  Hardware is cyBus GigabitEthernet Interface, address is 0050.73a0.bda0
  Internet address is X.X.X.2/30
  MTU 1500 bytes, BW 1000000 Kbit, DLY 10 usec,
     reliability 255/255, txload 1/255, rxload 1/255
  Encapsulation ARPA, loopback not set
  Keepalive set (10 sec)
  Full-duplex mode, link type is force-up, media type is SX
  output flow-control is unsupported, input flow-control is unsupported
  ARP type: ARPA, ARP Timeout 04:00:00
  Last input 00:00:07, output 00:00:01, output hang never
  Last clearing of "show interface" counters 1d19h
  Queueing strategy: fifo
  Output queue 0/40, 0 drops; input queue 0/75, 0 drops
  30 second input rate 0 bits/sec, 1 packets/sec
  30 second output rate 1000 bits/sec, 1 packets/sec
     351887 packets input, 43900564 bytes, 0 no buffer
     Received 34773 broadcasts, 0 runts, 1028 giants, 0 throttles
     0 input errors, 0 CRC, 73419 frame, 0 overrun, 0 ignored
     0 watchdog, 19308 multicast, 0 pause input
     0 input packets with dribble condition detected
     181113587 packets output, 2653176686 bytes, 0 underruns(0/0/0)
     0 output errors, 0 collisions, 3 interface resets
     0 babbles, 0 late collision, 0 deferred
     2 lost carrier, 0 no carrier, 0 pause output
     0 output buffer failures, 0 output buffers swapped out